From Nasdaq:

In 2023, markets saw positive returns, with Nasdaq up 45%, S&P 500 rose 26%, and US Treasuries gained 4%. Up to October 27, half of assets were still in the red, but markets rallied in the later part of the year due to optimism about rate cuts by the Fed.

However, looking at two-year returns, major US equity indices have been relatively flat, with S&P 500 up 3%, Nasdaq down 2%, and Treasuries down 9%. Other assets like European bonds, commodities, and EM equities have also performed poorly.

In 2024, the US rally has stalled, with 10-year Treasury yields climbing back to 4% and the Nasdaq 100 down 3%. Some have expressed concern based on the “January Barometer,” which suggests negative returns for the full year based on January performance.

Reasons behind the stalled rally include market’s realization of overpricing rate cuts, geopolitical tensions affecting shipping and oil prices, Fed minutes calling for elevated rates, and stronger-than-expected labor market data.

Please note that the information provided is for educational purposes only, and nothing herein should be construed as investment advice or a recommendation to buy or sell any security. Investors are advised to undertake their own due diligence and seek advice from a securities professional before making any investment decisions.



Read more: Rally Needs New Driver With Rate Cuts Already Priced In